The following is a balance sheet for Mundy Corporation at June 30, 2019 Mundy Corporation Balance Sheet June 30, 2019 ASSETS LIABILITIES Current Assets Current Liabilities Cash 20,300 Accounts Payable 25,600 Accounts Receivable Net 8,160 Wages Payable 34,300 Inventory 16,450 Interest Payable 1,350 Supplies 6,650 Unearned Revenue 5,700 Prepaid Insurance 10,000 Total Current Liabilities 66,950 Total Current Assets 61,560 Long Term Liabilities Property, Plant Equipment Notes Payable 24,700 Land 5,590 Total Liabilities 91,650 Buildings 21,000 STOCKHOLDERS' EQUITY Equipment 44,500 Common Stock (no par) 1,350 Less Accumulated Depreciation (17,650) Retained Earnings 22,000 Property, Plant Equipment Net 53,440 Total Stockholders' Equity 23,350 Total Assets 115,000 Total Liabilities Stockholders' Equity 115,000 Below is a list of all July transaction Purchased inventory costing $500, paying $250 in cash and owing the rest on account Employees earned wages of $1,000 Paid employees $5,000 Received $1,160 on account for a June purchase Paid $2,000 for advertising in July and August Received $200 in advance from a customer for an August sale Insurance is paid through December 1, 2019 Repaid a $5,000 note to Liberty, Inc plus $700 of interest for June and July Paid $6,000 for July rent Used $3,000 of supplies Issued common stock for $2,000 Sold land, which cost $5,590, for $5,000 Provided $5,000 of services to Volo, Inc which were paid for in June Paid $750 income tax expense Purchased and paid $100 for supplies Purchased equipment on July 31 for $460, paying $200 in cash and owing the rest on account REQUIRED QUESTIONS Prepare T accounts for each of the balance sheet accounts and enter the July 2019 activity Create new accounts as necessary Complete a July 31, 2019 balance sheet for Mundy Corporation Prepare a classified income statement for the month of July In parallel columns, show what would have been reported on an accrual basis and a cash basis

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Posted on Jul 03, 2024

The following is a balance sheet for Mundy Corporation at June 30, 2019.

Mundy Corporation

Balance Sheet

June 30, 2019

ASSETS		LIABILITIES
Current Assets		Current Liabilities
Cash	20,300	Accounts Payable	25,600
Accounts Receivable - Net	8,160	Wages Payable	34,300
Inventory	16,450	Interest Payable	1,350
Supplies	6,650	Unearned Revenue	5,700
Prepaid Insurance	10,000	Total Current Liabilities	66,950
Total Current Assets	61,560	Long-Term Liabilities
Property, Plant & Equipment		Notes Payable	24,700
Land	5,590	Total Liabilities	91,650
Buildings	21,000	STOCKHOLDERS' EQUITY
Equipment	44,500	Common Stock (no par)	1,350
Less: Accumulated Depreciation	(17,650)	Retained Earnings	22,000
Property, Plant & Equipment - Net	53,440	Total Stockholders' Equity	23,350
Total Assets	115,000	Total Liabilities & Stockholders' Equity	115,000

Below is a list of all July transaction:

Purchased inventory costing $500, paying $250 in cash and owing the rest on account.
Employees earned wages of $1,000. Paid employees $5,000.
Received $1,160 on account for a June purchase.
Paid $2,000 for advertising in July and August.
Received $200 in advance from a customer for an August sale.
Insurance is paid through December 1, 2019.
Repaid a $5,000 note to Liberty, Inc. plus $700 of interest for June and July.
Paid $6,000 for July rent.
Used $3,000 of supplies.
Issued common stock for $2,000.
Sold land, which cost $5,590, for $5,000.
Provided $5,000 of services to Volo, Inc. which were paid for in June.
Paid $750 income tax expense.
Purchased and paid $100 for supplies.
Purchased equipment on July 31 for $460, paying $200 in cash and owing the rest on account.

REQUIRED QUESTIONS:

Prepare T-accounts for each of the balance sheet accounts and enter the July 2019 activity. Create new accounts as necessary.
Complete a July 31, 2019 balance sheet for Mundy Corporation.
Prepare a classified income statement for the month of July. In parallel columns, show what would have been reported on an accrual basis and a cash basis.